Finance minister had earlier withdrawn complex income tax returns forms
GN Bureau | July 27, 2015
After being forced to revise income-tax returns forms, finance minister Arun Jaitley may also revise the draft of Indian financial code (IFC) which proposes to dilute powers of the RBI governor in interest rate decision.
He said today said that the government will take a view on the draft IFC after receiving comments from stakeholders.
“FSLRC (financial sector legislative reforms commission) has made its recommendations, which have been made public for comments. After the comments are received, it is only then that the government will take a view,” Jaitley told reporters in Delhi.
The draft had proposed taking away Reserve Bank chief’s authority to veto the interest rate decision of the central bank’s monetary policy committee.
The revised draft of IFC also proposed that the committee would have four representatives of the government and only three from the central bank, including the ‘RBI chairperson’.
The draft talks of ‘RBI chairperson’ and not ‘RBI governor’. RBI is headed by a governor, at present.The revised draft of IFC, released by the finance ministry last week, is based on the recommendations of the FSLRC headed by Justice B N Srikrishna.
At present, the RBI governor consults a technical advisory committee, but does not necessarily go by the majority opinion while deciding on the monetary policy stance.
Last week, chief economic adviser Arvind Subramanian said “FSLRC report is a report of FSLRC. It is not the report of the government or the finance ministry. The report is not the view of the government, commenting on media reports that the government is seeking to dilute RBI governor’s powers in deciding interest rate.”
The revised draft of IFC, posted on the website of the Finance Ministry, has said RBI “must constitute a Monetary Policy Committee to determine by majority vote on the Policy Rate required to achieve the inflation target”.
The first draft, submitted in March 2013, too had talked about the committee and majority vote, but gave powers to RBI chairperson to supersede the decision of the panel.
“In exceptional and unusual circumstances, if the RBI Chairperson disagrees with a decision taken at a meeting of the Monetary Policy Committee, the RBI Chairperson will have the right to supersede such decision,” it had said.
The central government has agreed to transfer Hotel Jaipur Ashok at Jaipur and Lalitha Mahal Palace Hotel at Mysore of India Tourism Development Corporation Ltd (ITDC) to Rajasthan and Karnataka governments, respectively and disinvest ITDC shares in Donyi Polo Ashok Hotel Corporation. The ca
Rohingya people who have entered India are not refugees but illegal immigrants, home minister Rajnath Singh has said, as they have not followed the due procedure to acquire a refugee status. “By deporting Rohingyas from India, we are not violating any international law. India is not a
Lucknow, September 15 The Uttar Pradesh Police releases official data on crime control under the new dispensation of Chief Minister Yogi Adityanath. Reveals that in 180 days of the new government, 420 encounters have taken place leading to the elimination of 15 supposedl
Since the dawn of this century, owing to their growing interdependence, India’s ties with the African states have gradually been acquiring significance in a rapidly globalising world. Such interdependence is manifesting itself quite clearly in economic, developmental and politico-strategic spheres of
Over the last decade, Chennai has been witnessing an unprecedented increase in urban population and a large expansion of industrial areas in its suburban regions. This expansion has largely been unorganised and haphazard. In order to regulate growth and make it uniform, the Tamil Nadu government has decide
The telecom regulator has opted for Bill and Keep, BAK, model for interconnection usage charges, that one operator pays to the other for call termination. At one stroke, the telecom regulatory authority of India (TRAI) regulation on interconnection has facilitated savings of Rs 5,000 crore to Reliance Jio